Ch 1: Introduction to Personal Financial Planning
About This Chapter
Introduction to Personal Financial Planning - About This Chapter
The text and video lessons in this chapter provide an introduction to basic personal financial planning. Study these lessons to learn how to plan for taxes and develop an entire financial schedule to more efficiently manage cash, credit cards and everything in between. After watching these lessons, you'll have a firm understanding of:
- How to develop a personal budget
- How to create a cash flow statement
- Why spending habits should be examined
- What personal assets and liabilities are
- What to look for in the future
|Introduction to Personal Finance||Study the four basic concepts associated with personal finance.|
|Personal Financial Advisors & Financial Decision Making||Learn basic financial terminology and the role of an financial advisor.|
|What is Economics? - Definition & Types||Look at different kinds of economics.|
|Microeconomic Resources: Scarcity & Utility||Study the roles of scarcity and utility in economics.|
|Opportunity Cost: Definition & Real World Examples||Examine the opportunity cost principle and how it can be used to make decisios.|
|How to Calculate Opportunity Cost||See how to properly calculate opportunity cost between two possibilities.|
|Personal Finance Planning: Taxes, Assets & Investing||Explore the elements of a budget and see how taxes, net worth, saving, and investing impact them.|
|Consumer Skills & Personal Finance Planning||See how recognizing income, setting realistic goals, tracking expenses and sticking to a budget are part of financial planning.|
|Institutions of the U.S. Banking System||Learn about the different banking systems.|
|Present and Future Value: Calculating the Time Value of Money||Explore investment values and see the formula for present value.|
1. Introduction to Personal Finance
Personal finances are a major source of stress and anxiety in America. Reduce some of the stress with an introduction to personal finance, focusing on four basic concepts: assets, liabilities, net worth, and cash flow.
2. Personal Financial Advisors & Financial Decision Making
Personal financial advisors are key to improving financial decision-making skills. Learn the role of financial advisors in budgeting, income statements, loans, credit, and retirement.
3. Opportunity Cost: Definition & Examples
Opportunity cost is a concept in economics that helps in estimating the value of different choices. Learn about the definition of opportunity cost, benefits, value, and value of time, and why the cost of an opportunity is found in the value of the next best alternative not chosen.
4. How to Calculate Opportunity Cost
Opportunity cost is determined by calculating how much of one product can be produced based on the opportunity cost of producing something else. Learn how to calculate opportunity costs to make efficient economical choices using the production of wheat versus rice as an example.
5. Personal Finance Planning: Taxes, Assets & Investing
Personal finance planning means using a budget to manage one's income. Learn about personal budgeting, income and expenses including taxes, saving and investing, assets and liabilities, and protecting and distributing assets.
6. Consumer Skills & Personal Financial Planning
Consumer skills and personal finance plans help individuals manage money and control their finances. Explore concepts in cash flow, debt and credit, savings and investments, and financial planning for the future.
7. Present and Future Value: Calculating the Time Value of Money
The time value of money is a critical concept in accounting and financial management. Explore how to calculate both the present and future values of money and annuities.
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